Monday, 5 March 2007

I know this is quite old news, but ill post it anyway. Chelsea revealed their finances for the previous year a few weeks ago and this is what Chief Executive Kenyon had to say about it.

Chelsea chief executive Peter Kenyon has given an overview of the current state of the club's business. Speaking at Monday morning's launch of Chelsea FC plc's accounts for 2005/6, Kenyon outlined the main areas where changes were made or improvements seen over that 12 month period. He also indicated that a five-year plan initiated after Roman Abramovich purchased the club remains valid. 'The backdrop of these results is success on the football pitch,' Kenyon said, 'not just for this season but for many seasons to come.

'Looking at it two or three years in, we have started successfully in that area and that underpins our business activity. 'The Academy system is paramount to ultimately reducing the amount we spend ontransfers,' he added. 'We have made significant investment in the structure of our Academy and our scouting network and not only are we delighted to have six full England internationals in our first team squad, we are also delighted that we have 10 England internationals at Under 21 level or younger.' Kenyon noted an on-going strategy of outsourcing non-core competences - the policy of allowing companies to work in partnership with Chelsea on areas where the club does not claim top level expertise - such as catering or the running of the hotels.

'We have seen increased brand awareness in North America and Asia' he continued. 'Hosting the Chinese Olympic team followed the launch of our Chinese language website and there will be other announcements about China in the next two to four weeks. 'In addition, we will go there in 2008 for a pre-season tour. That will follow going to America for the third pre-season in a row this July. 'It is fair to say that our awareness levels in both these countries are on a par with any top European club. From these levels we can improve business revenue and boost the image of our sponsors.

'Our losses are reduced by 43 per cent, down to £80 million and overall turnover increased by 2.3 per cent. 'Our merchandising revenue has increased by 44 per cent. That is very significant and up there with any club. 'Our football activities increased by six per cent and what I can tell you is there will be very significant increases in this current financial year in terms of turnover. The ability to grow this business will continue. 'So while no-one is sitting here happy to make a loss of £80 million,' began Kenyon's final summing up, 'it does show that we are on course to break even as outlined in our five-year plan.'


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